Impact of Abolition of HIPS on UK Housing Market

The recent suspension of house information packs by the new coalition government has got to be good news for conveyancing business in the north west. Many professionals in the housing market saw HIPS as putting off house buyers not least because those wanting to sell had to organise and pay for a HIP to be produced before they could put the property up for sale.

A top UK property website has recently reported that new properties for sale had seen a staggering 35% rise since the suspension. Another factor that is bound to impact positively on the conveyancing market is the prospect of capital gains tax rising from 18 to 50% under the new administration.

Also the fact that the coalition has stated that it does not intend calling another general election for 5 years means that the markets are able to plan and have some certainty over housing in the next few years. All this optimism however is tempered by some conveyancing professionals who fear that the UK may be in for a double dip recession which will run the housing market into free fall once again.

Such a move could force prices down hence making the £300 saving to house sellers from the hip redundant. The general market feeling however is one of quiet optimism and there is a broad agreement that the suspension of HIPs with a view to their abolition as soon as the legislation can be put before Parliament, can only be a good thing to get properties on the move and conveyancing professionals in work again.

conveyancing Cheshire

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